Auto Insurance Rate Discounts for Hybrids

Fuel-efficient hybrid vehicles are all the rage these days. Nearly every major automotive manufacturer now offers a series of hybrid vehicles—and there's no end in sight.

According to a study by J.D. Power and Associates, over 80% of American consumers feel that the U.S. is facing an energy crisis. So it's no surprise that hybrid cars have become so popular that car dealerships are having trouble keeping hybrids on the lot.

But if you think hybrid-mania is all about the gas mileage, think again. As you'll learn in this article, the perks of owning a hybrid extend far beyond the savings at the pump.

Hybrid Owners Can Earn Lower Auto Insurance Rates

If you own a hybrid or alternative fuel vehicle, you may be able to save on auto insurance. Research has shown that on average, hybrid owners tend to be more environmentally conscious, drive fewer miles, and are safer drivers than the general population. As a result, a number of auto insurance companies have introduced discounted auto insurance rates for hybrid vehicle owners.

Owning a hybrid vehicle can cut auto insurance rates up to 10% with a participating insurer.

How Does a Hybrid Vehicle Work?

A hybrid vehicle uses an electric motor in tandem with a conventional gas engine. The electric motor takes over when less horsepower is needed, resulting in less fuel usage and making the vehicle more efficient overall.

Despite the fact that hybrid vehicles now account for over 3% of the entire automotive market, many consumers are clueless as to how they operate (GreenCarCongress.com).

Other Hybrid Perks

Discounted auto insurance isn't the only benefit available to hybrid owners. Many government agencies and corporations have encouraged the use of hybrid vehicles with a series of hybrid-only perks:

• Federal income tax credit up to $3,400 for qualified hybrid vehicles. This is in addition to various state tax credits.
• Discount and free parking is available exclusively to hybrid drivers in many areas of the country. These laws are usually limited to city or county limits, so check with your city clerk's office for details.
• Some states allow hybrid vehicles to drive in carpool/higher occupancy lanes.
• A number of hotel chains offer discounted/free parking and special room rates to customers who own or rent a hybrid vehicle.
• A number of toll roads offer discounts to hybrid cars.
• In California, a number of hybrid vehicles are exempt from smog checks.
• Some hybrid owners feel a unique camaraderie with fellow fuel-sippers. Group gatherings, gas mileage competitions, blogs, websites, and environmentally-friendly message boards all celebrate the "hybrid experience."

Unfortunately there is no nationwide standard for most of these regulations, and they're being refined/expired on a regular basis. Contact your state's Department of Revenue to see which perks are being offered to hybrid vehicle owners in your area.

Approximately 62% of consumers now consider hybrid vehicles while car shopping, up 12% from 2007 (J.D. Power and Associates). But that doesn't mean you have to own a hybrid to save on auto insurance. No matter what vehicle you drive, InsuranceRates.com can help you shop for an affordable auto insurance rate in minutes! Give it a try—it's safe, secure, and only takes a few moments.